Italy: Entertainment & Media worth €36.6bn in 2022
November 3, 2022
From Branislav Pekic in Rome
Italy’s Entertainment & Media (E&M) market is set to close 2022 with total revenues at €36.6 billion, up from €34.3 billion in 2021, according to the PwC Entertainment & Media Outlook in Italy 2022-2026.
E&M revenues are set to rise at a CAGR of +9.6 per cent to reach €40.8 billion in 2026, driven primarily by internet access, advertising, video games and OTT.
Video will remain the biggest content category, accounting for 78.8 per cent of data consumption by 2026, with OTT video as the fastest-growing video format, with a 27.8 per cent CAGR.
Pay-TV revenues are set to decline further, as a result of intense competition for key content rights from the OTT sector, by 1.5 per cent CAGR to reach €2.3 billion in 2026. Households subscribing to pay-TV services will contract at a -1.9 per cent CAGR to 3.9 million in 2026, down from 4.3 million in 2021.
Traditional TV will lose share to OTT over the forecast period, although it will still lead the segment.
Netflix leads an increasing competitive OTT market in Italy, while the strength of the content proposition from Disney+ will see it expand at an 11.1 per cent CAGR and overtake Prime Video. However, DAZN will retain the second-largest subscriber base due to its investment in key sporting rights.
The continued shift from broadcast content towards on-demand, catch-up services and OTT will result in advertising revenue decline of 1.2 per cent CAGR over the forecast period, with TV advertising revenue reaching €3.1 billion in 2026.